![Business (Richard Ivey School of Business)](../../assets/md5images/5648a7af1373fb271b96ad5c163a9b4a.png)
Business Publications
Document Type
Article
Publication Date
4-2021
Volume
67
Issue
1
Journal
Journal of Corporate Finance
URL with Digital Object Identifier
https://doi.org/10.1016/j.jcorpfin.2020.101803
Abstract
Analyst talent, rather than the number of analysts following a firm, matters most to investors. We find: 1) Analysts with greater “natural” forecasting talent—controlling for experience, brokerage affiliation, and task complexity—contribute relatively more firm-specific rather than industry or market information; 2) Earnings forecasts by low-talent analysts may lead to substantial mispricing; 3) When earnings surprises are large, post-earnings-announcement drift is more prominent among firms covered by low-talent analysts; 4) Firms with low-talent analysts have significantly more insider trading prior to positive earnings news; and 5) Investing following insider trading is more profitable in stocks followed by low-talent analysts.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Citation of this paper:
Dang, C., Foerster, S., Li, Z.F., Tang, Z. 2020. Analyst Talent, Information, and Investment Strategies. Journal of Corporate Finance forthcoming
![plumX logo](http://cdn.plu.mx/3ba727faf225e19d2c759f6ebffc511d/plumx-inverse-logo.png)
- Citations
- Citation Indexes: 23
- Usage
- Downloads: 72
- Abstract Views: 19
- Captures
- Readers: 56
- Mentions
- Blog Mentions: 1
Included in
Business Administration, Management, and Operations Commons, Corporate Finance Commons, Finance and Financial Management Commons, Portfolio and Security Analysis Commons